About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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Pick of the Day: EUR/JPY

Posted 23:34 30 January 2006 | Comments

(Click on chart to enlarge)

The EURJPY is making lower lows on the 1 hour chart. I like a short trade at or below the 50 SMA (142.00). I drew the Fib line to show 3 points of resistance: 50 SMA, 50% Fib line, and the pivot point. Plus the pair is already below the pivot point, so there is a tendency already to go short.

I'm going to place my stop at 142.18, right above the 61% retracement line. As usual, I'm going for 10 pips.

My aggressive target will be at 141.64, the S2 area. Good luck and good trading!